Sign in

Have a Scrap Car? Know the RTO Rules for Selling a Car as Scrap

Have a Scrap Car? Know the RTO Rules for Selling a Car as Scrap

If you have a scrap car taking up valuable space in your garage or driveway, selling it for scrap might be a viable option. Not only can you free up space, but you can also earn some money in the process. However, before you proceed, it's important to understand the rules and regulations set by the Regional Transport Office (RTO) when it comes to selling a car as scrap. In this article, we will guide you through the RTO rules to ensure a smooth and legal process when selling your car for scrap.


●     Recognise the meaning of "scrap car"


It's important to understand what the RTO considers to be a "scrap car" in order to sell your automobile for scrap. An automobile is often regarded as a junk car if it can no longer be repaired, has reached the end of its useful life, or is judged unsafe for the road for a variety of reasons, including age, accidents, and natural catastrophes.


●     Obtain an accurate certificate of deregistration:


You must get a current deregistration certificate from the RTO before selling your automobile as junk. This paperwork releases you from any obligations related to the car and serves as evidence that you are no longer the owner of it. You must submit the required paperwork, including the original vehicle registration certificate, proof of insurance, a pollution under control (PUC) certificate, and a deregistration application, in order to acquire a deregistration certificate.


●     Select a licenced scrap dealer


Selecting a licenced scrap dealer recognised by the RTO is essential to guaranteeing that the scrapping procedure is carried out lawfully and professionally. When dismantling automobiles, authorized scrap merchants follow strict criteria and environmental requirements. Before concluding the sale, do extensive research, read reviews, and confirm that the scrap dealer has the necessary licenses and permits.


●     Verification of Documents and Sale Agreement


When selling your automobile for scrap, be cautious to examine the qualifications, licenses, and permissions of the scrap dealer to ensure their legitimacy. Create a sale agreement that describes all of the terms and circumstances of the transaction, including the agreed-upon selling price, the method of payment, and the ownership transfer. Keep a copy of the contract for your records.


●     Deliver the Car to the Scrap Yard


It is time to deliver your scrap automobile to the licensed dealer once you have finished the required paperwork and signed the selling agreement. Make careful to remove any personal items from the car and provide the scrap dealer the necessary paperwork, including the deregistration certificate. Then they will go on to the scrapping procedure, which entails disassembling the automobile, recycling any usable components, and properly disposing of the other components.


●     Inform the RTO of the Sale


You must notify the RTO of the transaction when the junk dealer gets ownership of your car. Visit the RTO office and submit a letter notifying them of the sale, a copy of the sale agreement, and the contact information for the scrap dealer. This action is essential to guarantee that your name is erased from the vehicle's records, avoiding any potential legal or monetary problems in the future.




Selling your car for scrap can be a convenient and financially rewarding solution, especially if you have a vehicle that is no longer roadworthy. By understanding and adhering to the RTO rules for selling a car as scrap, you can ensure a legal and hassle-free process. Remember to obtain a valid deregistration certificate, choose an authorized scrap dealer, verify credentials, and inform the RTO about the sale. By following these steps, you can confidently sell your scrap car, declutter your space, and contribute to responsible recycling practices.

Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more